Citigroup Inc, American leading financial services corporation, plans to boost compensation for women and minorities in the United States, the United Kingdom, and Germany as part of its annual pay process this year, said the Wall Street bank on Monday (Jan 15). As part of the move, Citi will also become the first big U.S bank to respond to a shareholder push to analyse and disclose the gender pay gap within its organisation.
Based on its survey conducted in the three countries mentioned earlier, it is found that women and minorities are paid only slightly less than their male and non-minority counterparts. The study revealed that women and minorities earned as much as 99 percent of what men and non-minorities are paid, Reuters reports.
Citi spokeswoman, Jennifer Lowney said in a statement of its website that compensation would be raised based on the pay gaps identified in the survey. She stated that the company’s continuing focus on pay equity is part of the effort to achieve the goal of being the employer of choice that is favourable for employees of all diverse backgrounds. The company added that it would adjust compensation for other individuals, where the analysis determined increases were necessary to make.
Citi, along with other renowned U.S banks and credit card companies, recently has been under investor pressure to disclose the gender pay gap within the organisation. Meanwhile, employers in the U.K will be required to publish gender pay gaps by April this year.
According to a joint statement by Citi and activist investor Arjuna Capital on Monday, banks have been among the largest offenders in this matter, with median pay gaps averaging 24 percent. Arjuna asked Citi’s shareholders last year to vote in favor of a proposal requiring the bank to address the gender pay gap.
However on Monday, Arjuna withdrew that proposal, saying that Citi’s announcement represented a major shift for U.S. banks and credit card companies. Arjuna Capital Managing Partner Natasha Lamb said that Citigroup is the first to step into a leadership role on the gender pay gap, something that has not been from any of its U.S. financial peers.